Developing countries
- The term “Emerging Economies” means:
a) Purchasing Power Parity (PPP)
b) Emerging markets
c) Developing countries
d) The above b and c
- The Unified Framework consists of the following:
a) Institution-based view
b) Resource-based view
c) Fundamental question: “What determines the success and failure of firm’s around the globe”?
d) All the above
- The primary weapons that foreign firms employ to offset “liability of foreignness” are:
a) Globalization
b) Understanding ethics
c) Understanding formal and informal institutions
d) Overwhelming resources and capabilities
- Although institutions do many things, their key role is to:
a) Build on the “rules of the game”
b) Determine the future of dictators around the globe
c) Increase transaction costs
d) Reduce uncertainty
- The following drive economic development:
a) Culture
b) Geography
c) Institutions
d) All the above
- The main components of culture are:
a) Business
b) Language
c) Religion
d) The above b and c
- Culture is defined as:
a) Regional and ethnic dilemma
b) Something that is difficult to define, therefore does not exist
c) Restrictions to businesses
d) Collective programming of the mind that distinguishes members of one group or category of people from another.
- Three approaches to managing ethics overseas are:
a) Respect for human dignity and basic rights
b) Respect for local traditions
c) Respect for institutional context
d) All the above
- Examples of resources and capabilities that are intangible are:
a) Human
b) Innovation
c) Reputational
d) All the above
- “Value chain” consists of the following series of activities:
a) VRIO Framework
b) SWOT Analysis
c) Political activities
d) Primary activities and support activities used in the production of goods and services, making them more valuable
11. The idea that governments should actively protect domestic industries from imports and vigorously promote exports represents:
a.
Theory of absolute advantage
b.
Theory of mercantilism
c.
Protectionism
d.
Modern trade theories
12. An economic theory that accounts for changes in the patterns of trade over time is known as:
a.
Strategic trade theory
b.
First-mover advantage theory
c.
Product life cycle theory
d.
Strategic trade policy
13. The national competitive advantage of industries depends on:
a.
Country factor endowments and firm strategy, structure, and rivalry
b.
Domestic demand conditions
c.
Related and supporting industries
d.
All of these answers
14. Political arguments against free trade include:
a.
National security and consumer perception
b.
Foreign policy and environmental and social responsibility
c.
Foreign policy and national security
d.
National security, consumer perception, foreign policy, and environmental and social responsibility
15. A type of FDI in which firms move upstream or downstream in different value chain stages in a host county is identified as:
a.
horizontal FDI
b.
radical FDI
c.
vertical FDI
d.
FDI flow
16. Agglomeration advantages stem from:
a.
Knowledge spillovers among closely located firms that attempt to hire individuals from competitors.
b.
Industry demand that creates a skilled labor force whose members may work for different firms without having to move out of the region.
c.
Industry demand that facilitates a pool of specialized suppliers and buyers also located in the region.
d.
All of these answers
17. What determines Foreign Exchange Rates is:
a) Relative price differences and PPP; Interests rates and money supply
b) Productivity and balance of payments; Exchange rate policies
c) Investor psychology
d) All the above
18. What does the term “Emerging Economies” mean?
19. What is the Unified Framework for Global Business?
20. What is the a “Liability of Foreignness”?
21. What are the disadvantages of Globalization? (Please write down only 3 disadvantages)
22. What do institutions do?
23. Write down some types of political systems.
24. Write 3 types of Economic Systems.
25. Define “Cultural Intelligence”
26. What “SWOT” stands for?
27. What VRIO stands for?
28. Managers needs to build firm strengths based on the VRIO framework
a) True
b) False
29. Define “Multinational Enterprise (MNE
30. What the term “Political Risk” means?
31. Explain why understanding cultural differences is crucial for global business.
32. Cluster is a group of countries that have similar cultures
a) True
b) False
33. Corruption is the abuse of public power for private benefits, usually in the form of bribery.
a) True
b) False
34. Proactive strategy is a strategy that anticipates ethical challenges and addresses them before they happen.
a) True
b) False
35. Outsourcing is turning over an activity to an outside supplier that will perform it on behalf of the local firm.
a) True
b) False
36. Managers need to build up resources and capabilities for future competition
a) True
b) False
37. Why do nations trade? Here are the 8 reason for trade What are the 8 reasons for trade?
1) Lower Prices
2) Greater Choice
3) Difference in resources
6) More efficient allocation of resources
4) Economies of scale
5) Increased competition
7) Source of foreign exchange
8) Political Harmony
38. What are the realities of international trade?
39. Explain how FDI results in ownership advantages. MNEs generally prefer ownership over licensing because ownership reduces dissemination risks, provides greater control over foreign operations, and makes firm-specific know-how easier to implement
40. Why do firms become MNEs by engaging in FDI? overall, firms become MNE’s because FDI provides the three-prolonged OLI advantages that they otherwise would not obtain.
41. What is the meaning of the term “Market Imperfection “ in other words “ Market Failure”? Market Failure. A situation in which the market does not allocate resources efficiently. Market failure can occur for one of three reasons. It may occur when one party has power that can prevent efficient transactions from occurring. An example is a monopoly.
42. Please know the following vocabulary and terms:
a) Foreign Exchange Rate
b) Appreciation
c) Depreciation
d) Floating (flexible) exchange rate policy
e) Fixed Exchange Rate policy
f) Capital Flight
g) International Monetary Fund (IMF)
h) Spread
i) Bid rate
j) Offer rate
k) Currency hedging
l) Strategic hedging
43. Risk analysis of any country must include an analysis of its currency risks.
a) True
b) False